Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country.
Suppose this country is open to trade with the rest of the world, and the world price of a pair of jeans is $40. If the government imposes a quota on imported jeans of 12,000 pairs per year, then the new equilibrium price of jeans in this country will be:
A. $80
B. $60
C. $120
D. $100
Answer: A
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a. above the demand curve. b. below the supply curve. c. under the demand curve and the supply curve. d. above the market supply curve and under the equilibrium price. e. under the market demand curve and above the equilibrium price.
Calculate the cross-price elasticity of demand between computers and printers, where a 10 percent decrease in the price of computers results in a 15 percent increase in the demand for printers
According to the data in the table, the inflation rate for 1996 was
Consider the following data from the Economic Report of the President.
a) 10.22 %
b) 2.28 %
c) 2.46 %
d) 1.1022 %
e) 11.022 %
An increase in the supply of money will lead to a(n)
A) increase in equilibrium real GDP and an increase in equilibrium price level. B) increase in equilibrium real GDP and a decrease in equilibrium price level. C) decrease in equilibrium real GDP and an increase in equilibrium price level. D) decrease in equilibrium real GDP and a decrease in equilibrium price level.